Rebirth of the Capital Legend

"That's logical," Liao Guoxiang said, taking over Chen Guiyun's words. "However, the market trend is never rational and is often greatly affected by emotions. Judging from the current opening sentiment and the unanimous views of many retail investors on major stock investment exchange platforms across the Internet, it is highly likely that the two markets will open higher.

As for how the market will go after it opens higher...

That depends on the selling pressure at the beginning of the trading session and the strength of the buying funds that are actively taken over under the influence of emotions.

However, no matter how things change, I always feel that today's pre-market expectations, sentiment, and form are more optimistic than yesterday.

In fact, yesterday's volume-shrinking and volatile trend.

There are several main lines in the market, whether it is the 'big infrastructure' line that chooses to continue to break through, or the 'emerging industrial chain' line that chooses to shrink and adjust.

In fact, the adjustment process of re-gathering and locking chips was completed during yesterday's trading session.

Logically speaking, the consensus expectations in today's market performance should be stronger than yesterday's performance.

Moreover, I think this consensus expectation, with the help of emotions, is likely to change upward.

That is to say, whether it is the main line of "big infrastructure" that played a certain sustained profit effect in yesterday's trading, or the main line of "emerging industrial chain" that performed slightly worse than expected and failed to truly complete the strong rebound trend, the expectations for today's market trend should not be pessimistic. "

"According to your analysis, Lao Liao..." Li Jinshi said, "Are you optimistic about today's market trend? Are you clearly bullish that the market will continue to break upward?"

Liao Guoxiang nodded and said, "The market trend has reached this point. In terms of form, there is really no reason to be bearish. Moreover, the core main lines of the market and the oversold main lines at low levels have been continuously repaired after this period of time. The K-line form structure has formed a bullish trend.

At least from a technical point of view, the probability of going up is much greater than the probability of going down.

In addition, the current news, external market trends, and the entire macro environment are in a warming trend compared to the previous period.

And the group of short-term profit-making funds that intervened in these major main areas in the early stage.

With the violent fluctuations in recent days, a lot of stocks have been cleared out.

Judging from the situation that the volume of several major main lines has increased and then gradually decreased, overall... the chip structure of several major main lines in the market is developing in a healthy direction.

In other words, the number of funds that choose to lock their positions and continue to hold bullish positions is clearly increasing.

Otherwise, it is impossible to reduce the volume at this position.

The volume at this position has shrunk, and the sentiment has not obviously weakened, which is enough to show that the funds that are bullish and long in the market are increasing, and the reluctance to sell is obvious. "

"Yeah, I think so too." After listening to Liao Guoxiang's analysis, Chen Guiyun nodded slightly and said, "Whether it is the index, the industry sectors in the major core main lines, or the core leading stocks, they are basically in a technical trend of long positions. The resistance to continue to move upward is obviously smaller than that to move downward. Moreover, this phenomenon can also be seen from the trends of the popular core leading stocks in the major core main lines in recent days.

Such as 'Oriental Yuhong', 'Capital Group', 'Huawen Online'... these popular concept stocks.

There are also leading stocks with heavyweights such as 'Anhui Conch Cement', 'Poly Real Estate', 'China Construction', etc.

Once there is a rapid dive in the market and concentrated selling due to profit-taking pressure occurs, after a wave of dives, the prices can always be recovered with the subsequent buying, forming a repairing market trend and quickly returning to the intraday high.

This kind of stock is neither weak nor weak. Every time it falls, it can create space again with the help of the following orders.

In my opinion, it is a sign of strength, that is, the upward resistance of the market is less than the downward resistance.

In fact, there is no shortage of bullish power in the market now. It's just that everyone understands that under the premise that the overall market trend and the overall structure have not yet escaped from the bear market, the continuity of the trend of individual stocks will not be very good, and the upward space is also questionable. Therefore, most of the funds that are willing to enter the market to take over are unwilling to continue to chase high prices and buy shares, putting themselves in a relatively passive situation.

But with the support of strong underlying logic and the real recovery of market investment confidence.

Although many capital groups are unwilling to chase high prices, they also do not want to miss the opportunity of this round of market.

Therefore, once the market experiences a pullback, strong buying power will emerge instantly.

This phenomenon...

I think that when the market's bullish sentiment and investment confidence further pick up, the trends of major indexes, popular stocks in major core lines, and leading heavyweight stocks become clearer, forming obvious right-side opportunities, naturally the mentality of those funds that are unwilling to chase high prices will change.

By then, there may be an obvious upward trend with both volume and price increasing.

Now, the market is digesting profit-taking while continuing to follow the buying trend and with the help of emotions, it is moving upwards with a few steps and looking back. I don’t think there is anything wrong with that.

And I think it is precisely when market sentiment is gradually fermenting and strong consistent expectations have not yet formed.

This is the best time to make arrangements and the best time to concentrate on speculating on core leading concept stocks.

In short, at this position, this pattern structure, and this market sentiment feedback, there is no need to worry too much, and we should also maintain a larger position and a relatively aggressive trading strategy. "

"Since both of you are optimistic about the market development, there will be no big problem." Li Jinshi laughed, "Let's see how the two core leading stocks of 'Oriental Yuhong' and 'Huawen Online', which are the focus of the market, will perform in the call auction and early trading.

As long as these two core leading stocks can still give relatively ideal and benign market feedback, the trend of the two core themes of "big infrastructure" and "emerging industrial chain" today will most likely not be too bad.

As long as these two core themes do not collapse, market sentiment can be maintained, and the market is likely to be stabilized with the support of these two core themes.”

"Does Mr. Li have positions in these two stocks?" asked Chen Guiyun.

Li Jinshi sighed and said, "I haven't found an opportunity to re-enter the Oriental Yuhong stock since it plunged last Thursday. I took a small position in Huawen Online when it was blocking the Quantong Education stock, but not much. Currently, I have more positions in Capital Group and Huaxin Cement. I hope that these two stocks can, under the guidance of Oriental Yuhong, continue to grow and reach new heights."

"Although the market recognition, popularity and trend strength of the two stocks, 'Capital Group' and 'Huaxin Cement', are not as good as 'Oriental Yuhong' and 'Huawen Online', they are also considered to be in the main field of 'big infrastructure', with strong fund following effect and one of the core hype leaders." Chen Guiyun said, "As long as the 'Oriental Yuhong' stock does not show serious negative feedback on the market, and as long as the funds currently locked in the 'Fuxing Road' stock do not suddenly sell off on a large scale to stop profits, I think the two stocks, 'Capital Group' and 'Huaxin Cement', should still have room for growth. After all, although the current market liquidity is somewhat lower than expected, it is still better than before. Under this liquidity, if the leader does not collapse, the second and third dragons...should also be able to make some money."

"I hope so." Li Jinshi nodded, then turned his gaze back to the two market charts.

And after the three of them continued to communicate in the group.

The market time at this time has already entered 9:15.

As countless eyes converged, the two stagnant stock markets suddenly began to jump violently.

Immediately afterwards, under the combined efforts of long and short buying and selling funds, the market conditions performed as expected by most people in the market, whether it was the weighted main line, the large infrastructure main line, or the confidence industrial chain main line, the related industry sectors in the major core main line areas, and the related stocks, most of them achieved a high opening trend.

Among them, there are several core concept leading stocks that have attracted much attention, such as 'Oriental Yuhong', 'Huawen Online', 'Capital Group', 'Huaxin Cement', etc.

In the initial call auction, they opened with an increase of more than 5%.

Even the check for 'Huawen Online' opened with a daily limit.

"As expected, they all opened higher." Li Jinshi smiled as he saw the performance of the two markets in the initial stage of the call auction. "And the opening was in line with expectations. The major core lines did not open too high. However... the check of 'Huawen Online', after yesterday's crash, was able to open directly at the daily limit today. This is a bit beyond expectations."

"It's hard to say at the moment," Liao Guoxiang responded. "Before 9:20, there were many fake orders. We have to wait until these fake orders are withdrawn before we can truly judge the strength of the market."

"The 'Huawen Online' check currently has 4 daily limit orders on the market. Although there are certainly a lot of false orders among them..." Chen Guiyun said, "But with this buying power, it should be highly likely to maintain a red market and high opening trend in the end, right? As long as this check can maintain a red market and high opening, compared with its intraday trend yesterday, it is beyond expectations. And this check's opening beyond expectations, I think it can stimulate other stocks in the core line of 'emerging industrial chain' to follow suit. The position of the 'emerging industrial chain' line is originally low. As long as the leader stabilizes and the sentiment continues to progress, there will definitely be a lot of funds willing to speculate on the market."

"Yeah, I think so too." Li Jinshi nodded, "And judging from the situation, the 'Storm Technology' check, which had a flash crash yesterday, opened at a good position in the initial call auction. According to normal theoretical logic... the 'Storm Technology' check should have opened significantly lower today, but it didn't. It's actually in the red at the moment. This check didn't show any obvious negative feedback, and the funds that bought the bottom yesterday made money. So, correspondingly, the overall speculation risk appetite of the 'emerging industrial chain' line will have an expectation of improvement.

At the same time, many low-priced oversold stocks were affected by the flash crash of "Storm Technology" yesterday and fell sharply in the late trading.

There is also an expectation of a rebound and recovery today.

Judging from the current market situation, there is no negative feedback phenomenon in the "emerging industrial chain" line, and expectations for capital speculation are increasing.

Then, the check of 'Chinese Online' is the core leader of the entire 'emerging industrial chain'.

There is a high probability that it will be snapped up by many short-term speculative funds under the positive feedback of emotions. "

"Well, relatively speaking, there is nothing surprising about the opening of the initial call auction for the Oriental Yuhong check." Chen Guiyun took over and continued, "Why do I always feel that the market as a whole is still moving in a rotation trend? Will the 'emerging industrial chain' line take the lead today?"

"Hehe, you don't say... it's really possible." Liao Guoxiang laughed and continued, "The recent market trend is that the more you are optimistic about a main line, the more likely it is that the main line will adjust in the next day. But when you think your idea is wrong and start to reduce your position to stop loss and adjust your position to other main lines, it will make a sharp turn and return to the main attack echelon where the main market funds are focused."

"That's right." Chen Guiyun said, "With the recent trend, frequent adjustments to positions are indeed more likely to make mistakes and get slapped in the face."

"So..." Liao Guoxiang said, "Instead of switching quickly, it is better to stick to one main line. Anyway, as long as the overall market sentiment of going long does not collapse and the enthusiasm for going long is still there, the trend of the several core main lines of the market will most likely not be too bad. Moreover, with the current market liquidity, it is still very difficult for the main funds to attack one main line and create sustained space. Therefore... switching by rotation is basically inevitable."

"No wonder Lao Liao is determined to go long in the main line of 'big infrastructure'." Li Jinshi said with a smile, "It seems that my vision is still not enough!"

The three of them continued to communicate briefly.

Soon, the market trading time entered the real call auction stage where orders cannot be withdrawn, that is, after 9:20.

All I saw was a large number of fake orders being cancelled.

In the market situation of the two markets that was once again revealed, the "big infrastructure" main line-related industry sector index, as well as hot concept stocks, which were favored by most investors in the market before the market opened, generally declined a lot compared with the opening trend before 9:20.

Even the core leading stock 'Oriental Yuhong'.

The high opening range of both stocks dropped rapidly from 9% at 16:5.63 to 2.33%.

Before the market opened, most people were pessimistic about the main line of the "emerging industrial chain" related industry sectors and their popular concept stocks, which were thought to be likely to open lower today.

On the contrary, there are signs that the stock price is getting stronger during the call auction process.

Among them, the 4 daily limit buy orders for 'Huawen Online' at the beginning of the trading session not only did not withdraw the orders, but increased to 6 at this moment. At the same time, in the field of 'emerging industrial chains', stocks such as 'Quantong Education', 'Baofeng Technology', 'LeTV', etc., which had fallen sharply in the late trading yesterday, also clearly exceeded expectations and showed a trend of opening high and closing in the red.

"It's really weird. It doesn't make sense. Didn't the 'Huawen Online' check explode during yesterday's trading session? There was no obvious positive stimulus today. Why did it open at the daily limit?" Noting that the market's call auction trend had some obvious changes from the expected direction before the market opened, Zheng Jinming, one of the main speculators of the 'Gusu system', was full of surprise. "This doesn't make sense at all. Who pushed the limit in the call auction?" (End of this chapter)